Harris Teeter says it’s exploring sale

Harris Teeter Supermarkets Inc. confirmed Wednesday night that it is considering a sale of its assets, saying it has been approached by two private-equity companies that are interested in buying the grocery chain.

In a statement posted on the Harris Teeter website, the company also confirmed it has enlisted the help of a unit of JPMorgan Chase & Co. in assessing its options.

“There can be no assurance that these discussions will result in any transaction,” Harris Teeter said in the statement. “If a transaction were entered into, there can be no assurance as to the price, timing or other terms of such transaction.”

“We’re aggressively looking to go into (North Carolina) with additional locations, but any potential information as far as Publix being a suitor for Harris Teeter is a rumor,” said Maria Brous, a spokeswoman for Lakeland, Fla.-based Publix.

Cincinnati-based Kroger declined to comment.

Harris Teeter’s market capitalization crossed the $2 billion threshold on Wednesday — with the stock up more than 3 percent — as word of a potential sale spread. The stock closed Wednesday at $40.72, up from Tuesday’s closing price of $39.50. And Tuesday’s price was up more than 6 percent on the day.

Here is Harris Teeter’s full statement:

While it is the long-standing policy of Harris Teeter Supermarkets, Inc. (NYSE: HTSI) (the “Company”) not to comment on rumors regarding mergers and acquisitions, in response to certain media articles as well as to remove any disruption to the conduct of its business and its associates, the Company confirmed today that it has retained J.P. Morgan Securities LLC (“J.P. Morgan”) to assist the Company in holding discussions with certain parties regarding strategic alternatives. The Company was approached by two private equity firms who expressed an interest in purchasing the Company. In order to fulfill its duty to its shareholders to evaluate opportunities to increase shareholder value, the Company retained J.P. Morgan to assist it in conducting discussions with certain highly qualified parties. The Company intends to continue its strategic new store growth plan and maintain the employment of its associates in its stores, and its distribution and manufacturing facilities in Indian Trail, Greensboro, and High Point, North Carolina, as well as at its corporate headquarters in Matthews, North Carolina.

There can be no assurance that these discussions will result in any transaction. If a transaction were entered into, there can be no assurance as to the price, timing or other terms of such transaction. The Company does not plan to provide any additional information until such discussions are concluded.